Erytech's Battle With Activist Investor Echoes As Pherecydes Pharma Merger Vote Comes Closer

In February, Erytech Pharma SA ERYP announced its proposed combination with Pherecydes Pharma S.A.

In June, Erytech announced that Akkadian initiated proceedings to postpone the vote, scheduled on 23 June, on the merger with Pherecydes.

The merger would see Pherecydes absorbed into publicly listed Erytech, with Pherecydes shareholders receiving 15 new Erytech shares for every four of their current shares.

Monday, Erytech Pharma responded to what it described as Akkadian Partners' "disinformation," arguing that the investor's challenge to the merger was "based on incomplete information and misleading arguments."

Akkadian Partners owns around 5% of Erytech's stock.

Erytech warned its shareholders that derailing the merger would risk destroying the value of both companies.

"To the best of our knowledge, Akkadian's predation of Erytech's corporate structure and cash will not support ideas of sufficient quality and robustness to create value for the company and its shareholders, on the contrary," the company said in its SEC filing.

Akkadian said the biotech is "scandalous" for suggesting the company might have to liquidate if the merger falls through.

"This is yet another example of the disdain shown towards the shareholders of Erytech by demanding that they approve the merger or face disappearance following the liquidation of their company," the investor group wrote.

"Akkadian wishes to point out that the merger with Pherecydes would be the equivalent of serving a death warrant on Erytech, which has ample financial resources to continue trading and to grow without a merger," they added.

Price Action: ERYP shares are down 3.76% at $0.77 on the last check Tuesday.